Q2 2026 AudioCodes Ltd Earnings Call Transcript
Key Points
- AudioCodes Ltd (AUDC) reported solid Q2 2026 results with revenue growth of 3.1% year-over-year, driven by strong momentum in its two primary growth engines: Live managed services and Voice AI.
- The company's Voice AI business grew over 50% year-over-year in Q2, with first-half 2026 revenue growing close to 100% compared to the first half of 2025, positioning it well to achieve its full-year growth target of 40-50%.
- Annual recurring revenue (ARR) from Live managed services and Voice AI reached $84 million, growing 20% year-over-year and doubling over the last three years, highlighting the increasing contribution of high-quality recurring revenue.
- Backlog reached nearly $90 million, up 23% year-over-year, providing strong top-line visibility for future quarters.
- The company achieved significant milestones in the Microsoft ecosystem, including being the only third-party solution named in Microsoft's Teams Phone Agent announcement and becoming the first solution listed on Microsoft's new Teams Voice Agent Certification Program.
- AudioCodes Ltd (AUDC) raised its full-year 2026 revenue guidance to $251-$256 million, up from the previous range of $247-$255 million, reflecting increased confidence in its growth trajectory.
- Non-GAAP net income for Q2 2026 declined to $3.9 million from $4.1 million in the year-ago quarter, despite revenue growth, indicating margin pressure.
- Day sales outstanding (DSO) remained elevated at 107 days as of June 30, 2026, which could indicate potential cash flow collection challenges.
- The company's overall revenue growth of 3.1% remains modest, and product revenues were roughly flat year-over-year, suggesting limited growth in the traditional hardware business.
- AudioCodes Ltd (AUDC) faces ongoing risks related to its operations in Israel, including potential disruptions from regional hostilities and military service obligations of personnel.
- The company's GAAP net income was only $0.5 million for the quarter, reflecting significant expenses and charges that reduce profitability compared to non-GAAP results.
- While the company is investing heavily in Voice AI, it acknowledges the need to continue increasing investments in this area, which could pressure near-term profitability.
Thank you for holding and please remain on the line. The Audio Codes conference call will begin momentarily.
Thank you for your patience.
Greetings. Welcome to the Audio Codes Second Quarter 2026 Earnings Conference Call.
(Operator Instructions)
I will now turn. Conference over to your host, Roger Tuchin, Vice President of Investor Relations. You may begin.
Thank you, operator. Hosting the call today are Shabtai Adlersberg, President and Chief Executive Officer, and Niran Baruch, Vice President of Finance and Chief Financial Officer. Before we begin, I'd like to remind you that the information provided during this call may contain forward-looking statements relating to Audio Codes, business outlook, future economic performance, product introductions, plans, and. Related thereto, and statements concerning assumptions made or expectations as to any future events, conditions, performance, or other matters are forward-looking statements as the term is defined
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